News For This Month: Funds

Top Things You Need to Consider Before You File for Bankruptcy

You will feel at your lowest point in life when your negotiations with creditors have failed, foreclosure proceedings are underway, and repossession of property is imminent. Your income, in this situation, may not be enough to cover your medical bills no matter how small they may be. If you reach a similar point in life, it may be the time to consider filing for bankruptcy. However, bankruptcy laws have evolved and you have to be more careful before you file. The following are some of the things you must do before filing for bankruptcy.

The most important thing you can do while filing for bankruptcy is to disclose your expenses, income, and assets in the petition. Full disclosure of your income will help you in discharging debts. You will have proven to be honest to the creditors and you can proceed to repay your debts starting with those that have the highest priority. If you fail to disclose everything, not only will you lose the right to a discharge of your debts, but you may pave the way for criminal charges to be filed and fines imposed.

When repaying debts, do not withdraw funds from your retirement account when you have run out of cash. Retirement funds are among the assets and income sources that are protected by the bankruptcy laws hence you should not use it to offset a debt. Always weigh all the positives and negatives of withdrawing all your savings before you do it. If you don’t have another option to repay creditors, just file for bankruptcy and leave your retirement benefits until a time when you will need them for your own use.
Figuring Out Funds

You shouldn’t raise a red flag by transferring ownership of some property or assets to your family members just before filing for bankruptcy. All the transfers you make will be looked into and addressed as an attempt to reduce your assets. If it is determined that you attempted to hide assets, you will have your right to a discharge taken away.
A Beginners Guide To Money

When you know you are going to file for bankruptcy, avoid using credit cards. Spending using credit cards at this moment when you are filing for bankruptcy is a clear indication that you will not be able to repay for the amount you are spending. Using credit cards yet you cannot pay your debts shows that you know what you are doing yet you are still carrying on intentionally and this will cause major issues in your bankruptcy case. It is important that you follow the things that have been mentioned here in order to successfully file for bankruptcy. After all, bankruptcy isn’t the end of life and you will have a change to reorganize your finances.